Risk of shares on the Macedonian capital market measered by the Beta coefficient
Risk of shares on the Macedonian capital market measered by the Beta coefficient

Summary/Abstract: Risk is one of the key variables in making appropriate investment decision. In literature there are more variables to assess the risk of an investment. When analyzing the finances, especially when considering share as a dominant financial asset on the capital market, the most commonly used measure is the beta coefficient. Based on this variable is determined the risk of a given share in achieving the expected yield of this share. In theory, but in the practice also, there is a positive correlation between yield and risk. The paper subject is the determination of the beta of the Macedonian capital market. To simplify the calculation of this coefficient does not take all the shares on the Macedonian Stock Exchange, but only shares entered in the market index MBI 10. Also, the paper analyzes the relation between the rate of return and the risk involved in MBI 10. Based on this research, it proves the existence negative correlation between yield and risk so it contrary to findings from the literature and the usual world practice, which causes a need for analysis of the reasons for this state of the capital market in the country.

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